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On Jul 31, HRM Ltd had a cash balance of $12122 in the general ledger. The bank statement on that date showed a balance of $11732. A comparison of the bank statement with the Cash account revealed the following: 1 Deposits in transit total $2550. 2 The bank statement included electronic collections from customers on accounting totalling $1340. HRM had not recored the EFT. 3 A deposit of $450 made by another company was incorrectiy added to HRM's account by their bank. 4 The bank statement included service charges and card processing fees of $70. 5 Cheques outstanding on June 30 totalled $1886. Of these, $1446 worth cleared the bank in July. All cheques written in July cleared the bank in July. Prepare a bank reconciliation. Then, enter the appropriate amounts in the fields below. If you have not added or subtracted an amount to the bank or books, enter 0. What is the total amount that needs to be ADDED to the bank side? What is the total amount that needs to be SUBTRACTED from the bank side? What is the total amount that needs to be ADDED to the books side? What is the total amount that needs to be SUBTRACTED from the books side? How many journal entries do you have to record for this bank reconciliation?

On Jul 31, HRM Ltd had a cash balance of $12122 in the general ledger. The bank statement on that date showed a balance of $11732. A comparison of the bank statement with the Cash account revealed the following: 1 Deposits in transit total $2550. 2 The bank statement included electronic collections from customers on accounting totalling $1340. HRM had not recored the EFT. 3 A deposit of $450 made by another company was incorrectiy added to HRM's account by their bank. 4 The bank statement included service charges and card processing fees of $70. 5 Cheques outstanding on June 30 totalled $1886. Of these, $1446 worth cleared the bank in July. All cheques written in July cleared the bank in July. Prepare a bank reconciliation. Then, enter the appropriate amounts in the fields below. If you have not added or subtracted an amount to the bank or books, enter 0. What is the total amount that needs to be ADDED to the bank side? What is the total amount that needs to be SUBTRACTED from the bank side? What is the total amount that needs to be ADDED to the books side? What is the total amount that needs to be SUBTRACTED from the books side? How many journal entries do you have to record for this bank reconciliation?

Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section: Chapter Questions
Problem 2AP
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On Jul 31, HRM Ltd had a cash balance of $12122 in the general ledger. The bank statement on that date showed a balance of $11732. A comparison of the bank statement with the Cash account revealed the following: 1 Deposits in transit total $2550. 2 The bank statement included electronic collections from customers on accounting totalling $1340. HRM had not recored the EFT. 3 A deposit of $450 made by another company was incorrectiy added to HRM's account by their bank. 4 The bank statement included service charges and card processing fees of $70. 5 Cheques outstanding on June 30 totalled $1886. Of these, $1446 worth cleared the bank in July. All cheques written in July cleared the bank in July. Prepare a bank reconciliation. Then, enter the appropriate amounts in the fields below. If you have not added or subtracted an amount to the bank or books, enter 0. What is the total amount that needs to be ADDED to the bank side? What is the total amount that needs to be SUBTRACTED from the bank side? What is the total amount that needs to be ADDED to the books side? What is the total amount that needs to be SUBTRACTED from the books side? How many journal entries do you have to record for this bank reconciliation?
Transcribed Image Text:On Jul 31, HRM Ltd had a cash balance of $12122 in the general ledger. The bank statement on that date showed a balance of $11732. A comparison of the bank statement with the Cash account revealed the following: 1 Deposits in transit total $2550. 2 The bank statement included electronic collections from customers on accounting totalling $1340. HRM had not recored the EFT. 3 A deposit of $450 made by another company was incorrectiy added to HRM's account by their bank. 4 The bank statement included service charges and card processing fees of $70. 5 Cheques outstanding on June 30 totalled $1886. Of these, $1446 worth cleared the bank in July. All cheques written in July cleared the bank in July. Prepare a bank reconciliation. Then, enter the appropriate amounts in the fields below. If you have not added or subtracted an amount to the bank or books, enter 0. What is the total amount that needs to be ADDED to the bank side? What is the total amount that needs to be SUBTRACTED from the bank side? What is the total amount that needs to be ADDED to the books side? What is the total amount that needs to be SUBTRACTED from the books side? How many journal entries do you have to record for this bank reconciliation?
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